Simple and Compound Interest Additional Practice

Mr. Smith deposited $40, 000 in a bank and earned simple interest at 7 % for two years. Calculate the interest earned at the end of the period.

• $4000

• $5600

• $200

• $2800

• $3400

How much simple interest is due on a loan of $120 for two years if the annual rate of interest is 5.5%?

• $12

• $26.40

• $33

• $13.20

• $26

A man wishes to invest $1500. He can invest in an investment club which pays a simple interest of 8% for 3 years. What is the amount in his account after 3 years?

• $1832.1

• $1830

• $1524

• $1860

Richard deposited $5,500 for 6 years on 2.40% interest rate in his saving account. How much simple interest will he earn?

• $792

• $1122

• $462

• $726

Principal = $47,300, Rate = 3%, Time = 4 months. What will that total principal + interest payment be?

• $47,867.60

• $53,833.50

• $49,941.90

• $47,725.70

Principal = $6,000, Rate = 7%, Time = 1 year. Calculate the simple interest

• $420

• $407

• $360

• $540

Diana takes a loan of $10,000 on 3% interest rate. She plans to pay the loan off after 2 years. Calculate the simple interest

• $800

• $600

• $440

• $700

Bob takes a loan of $7,000 on 5% interest rate for 5 months. Calculate the simple interest

• $175

• $203

• $274

• $147

John wants to open a showroom for that he borrows $48,000 on 12% interest rate. He plans to pay this after 4 years. What will that total principal + interest payment be?

• $72,000

• $71,040

• $73,400

• $73,150

Nelson lands $4,650 on 2% interest rate. He plans to pay this after 2 months. What will that total principal + interest payment be?

• $4665.81

• $4710.81

• $4510.84

• $4492.73